Valuation report of Register valuer qualified under Section 247 is applicable on valuation under following Laws:

I. Valuation under Companies Act, 2013

II. Valuation under Insolvency Code: Under Insolvency Code and Insolvency and Bankruptcy Board of India Regulations, 2016 – Registered Valuer means a person registered as such in accordance with the Companies Act, 2013 and rules made there under

III. Valuation under SEBI : Under SEBI (REIT and InvIT) Regulations, 2016 “valuer” means any person who is a “registered valuer” under section 247 of the Companies Act, 2013 and who has been appointed by the manager to undertake valuation of the REIT assets

Question 2. Date from which Section and Rules of Register Valuer and Valuation came into effect. Section 247 of the Act has now come into force w.e.f. 18th October, 2017

Question 3.A person rendering valuation services as on date whether he can continue to provide valuation serviced without complying the condition of this chapter or not?

Yes, as per Rule 11 Any person who may be rendering valuation services under the Act, on the date of commencement of these rules, may continue to render valuation services without a certificate of registration under these rules up to 31st March, 2018.

Therefore, w.e.f. 31.03.2018 he shall not be eligible to provide the valuation services without fulfilling the condition mentioned under these Rules.

Question 4. Who is the authority to function under these rules?

The CG has delegated the powers to IBBI to function as authority under these rules.

Question 5.Whether a unregistered partnership firm can apply for the register valuer?

No, an unregistered partnership firm can’t apply for the same.

Only a “partnership entity” means a partnership firm registered under the Indian Partnership Act, 1932

Question 6.Mandatory condition to become Register Valuer.

There are three mandatory conditions to become register valuer:

i. Education Qualification (as per rule 4)

ii. Experience (as per rule 4)

iii. Passing of Valuation examination (as per rule 5)

Question 7. Whether there is any time period of making of application for register valuer after passing of examination?

Yes, as per Rule 3(1) (c) Person have to make the application for registration as valuer within 30 year of passing of examination.

As per Rule 3(1) (g) only a person resident in India can become register valuer.

Clause (v) of section 2 of the Foreign Exchange Management Act, 1999 ‘a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year’.

9. Whether a Company can be registered as register valuer. If yes, then what are the conditions for registration?

Yes as per Rule 3(2)(a) a Company can be register as valuer by fulfilling the conditions.

Primary Condition:

it is not a subsidiary, joint venture or associate of another company or body corporate

it has been set up for objects rendering professional or financial services, including valuation services

three or all the directors, whichever is lower, of the company, are registered valuers; or

Question 10.Qualification to become register valuer?

Post Graduate:

Post Graduate diploma in Specific discipline

At least 3 year experience in specific discipline

Bachelor Degree:

Bachelor degree in Specific discipline

At least 5 year experience in specific discipline

Member of ICSI / ICSI / ICWA

3 years after membership experience

Any one qualification mentioned above

Question 11.What is the meaning of Specific discipline?

Specific discipline which is relevant for valuation of an asset clause for which the registration as a valuer is sought under.

In general language, specific experience in valuation of that particular class of assets in which registration as valuer is applying.

Question 12. Whether there is any limit for appearance for valuation exam?

An individual may appear for the valuation examination any number of times.

Question 13.What is the Form no. for application as register valuer

Individual: Application shall be made in form A of Annexure II.

Partnership Firm: Application shall be made in form B of Annexure II.

Question 14.How much is the registration Fees?

Individual : Rupees 5,000/-

Partnership : Rupees 10,000/-

Question 15. Whether a register valuer can do valuation of class of assets other than in which he is registered?

A registered valuer, not conduct valuation of the assets or class(es) of assets other than for which he/it has been registered by the authority

Question 16. Whether a register valuer can transfer its membership one registered valuers organization to another?

With the prior permission of the authority register valuer can shift its membership from one registered valuers organization to another

Question 17.Time period for maintenance of record of documents after completion of valuation.

Register valuer shall maintain the record of each assignment undertaken by him for at least three years from the completion of such assignment.

Question 18.Power of the Authority.

The authority may cancel or suspend the registration of a valuer or recognition of a registered valuers organization for violation of the provisions of the Act

Question 19.Punishment for Contravention of Rules.

He shall be punishable in accordance with sub-section (3) of section 469 of the Act.

Question 20.Punishment for False statement in Report.

If in any report, certificate or other document required by, or for, the purposes of any of the provisions of the Act or the rules made there under or these rules, any person makes a statement,—

(a) which is false in any material particulars, knowing it to be false; or

(b) which omits any material fact, knowing it to be material,

he shall be liable under section 448 of the Act.

Question 21.Code of Conduct for Register Valuer.

Integrity and Fairness

Professional competence and Due care

Independence and disclosure of Interest

Confidentiality

Information Management

Gifts and Hospitality

Remuneration and cost

Occupation, employ ability and restrictions.

Question 22.Which is the assets class in which Company Secretaries, Chartered Accountants are allowed to getregister as register valuer.

As per annexure IV, Company Secretarial and Chartered Accountants are allowed to get register as register valuer in the field of “Securities of Financial Assets”.23.Requirement of Education qualification, experience and Valuation specific education course for valuation of Securities or Financial Assets by member of ICSI / ICAI / ICMA.

i. Education Qualification:

Member of the Institute of Chartered Accountants or The Institute of Cost Accountants of India or the Institute of Company Secretaries of India;

ii. Experience:

Three years of experience in the discipline.

iii. Courses as per syllabus specified under rule 5 of the Valuation Rules.

Note:

In case a partnership entity or company is the registered valuer, allow only the partner or director who is a registered valuer for the asset class (es) that is being valued to sign and act on behalf of it.

(Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com).

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With reference to Question you have said that a company may register as a valuer. But reference to rule 3 (2) (a) in this connection may not be coorect. Please give the correct rule no. Also mention by when they have to make application